2021 Q4 Form 10-K Financial Statement

#000155837022002400 Filed on March 01, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2021
Revenue $884.4M $913.2M $3.498B
YoY Change -1.44% -3.12% 0.18%
Cost Of Revenue $788.4M $785.8M $3.081B
YoY Change -1.4% -4.05% -1.29%
Gross Profit $96.02M $127.4M $416.7M
YoY Change -1.78% 3.04% 12.55%
Gross Profit Margin 10.86% 13.95% 11.91%
Selling, General & Admin $57.23M $61.71M $230.1M
YoY Change 14.68% 8.29% 13.45%
% of Gross Profit 59.6% 48.42% 55.23%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $26.69M $27.16M $105.6M
YoY Change 12.16% 39.3% 27.95%
% of Gross Profit 27.8% 21.32% 25.33%
Operating Expenses $57.22M $61.71M $230.1M
YoY Change 14.68% 8.29% 13.45%
Operating Profit $38.79M $65.28M $170.2M
YoY Change -18.94% -1.95% 3.78%
Interest Expense -$3.996M -$4.698M -$18.50M
YoY Change 81.64% -199.37% -191.13%
% of Operating Profit -10.3% -7.2% -10.87%
Other Income/Expense, Net -$256.0K $181.0K $299.0K
YoY Change -164.0% 84.69% -75.77%
Pretax Income $32.96M $60.77M $151.9M
YoY Change -22.62% -1.82% 4.27%
Income Tax $3.424M $16.71M $36.12M
% Of Pretax Income 10.39% 27.5% 23.78%
Net Earnings $29.42M $44.05M $115.6M
YoY Change -7.52% 0.25% 10.13%
Net Earnings / Revenue 3.33% 4.82% 3.31%
Basic Earnings Per Share $0.55 $0.82 $2.19
Diluted Earnings Per Share $0.54 $0.81 $2.17
COMMON SHARES
Basic Shares Outstanding 53.63M 53.77M 52.67M
Diluted Shares Outstanding 54.17M 54.37M 53.16M

Balance Sheet

Concept 2021 Q4 2021 Q3 2021
SHORT-TERM ASSETS
Cash & Short-Term Investments $200.5M $199.0M $200.5M
YoY Change -38.63% -12.9% -38.63%
Cash & Equivalents $200.5M $199.0M $200.5M
Short-Term Investments
Other Short-Term Assets $86.26M $52.44M $86.26M
YoY Change 185.64% 58.92% 185.64%
Inventory
Prepaid Expenses
Receivables $895.3M $965.8M $895.3M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.182B $1.217B $1.182B
YoY Change 5.99% 8.97% 5.99%
LONG-TERM ASSETS
Property, Plant & Equipment $433.3M $434.3M $591.9M
YoY Change 21.64% 18.43% 5.04%
Goodwill $581.7M $584.7M
YoY Change 170.41% 171.81%
Intangibles $171.3M $172.2M
YoY Change 180.8% 173.3%
Long-Term Investments
YoY Change
Other Assets $15.06M $14.49M $16.36M
YoY Change 17.86% -2.48% 11.33%
Total Long-Term Assets $1.361B $1.381B $1.361B
YoY Change 59.34% 56.47% 59.34%
TOTAL ASSETS
Total Short-Term Assets $1.182B $1.217B $1.182B
Total Long-Term Assets $1.361B $1.381B $1.361B
Total Assets $2.543B $2.598B $2.543B
YoY Change 29.13% 29.93% 29.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $273.5M $315.3M $273.5M
YoY Change 11.21% 25.12% 11.21%
Accrued Expenses $174.8M $234.0M $166.9M
YoY Change -12.88% 4.64% -10.73%
Deferred Revenue $240.4M $202.1M
YoY Change -10.03% -21.05%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $67.23M $68.03M $67.23M
YoY Change 40.88% 42.59% 40.94%
Total Short-Term Liabilities $759.1M $822.7M $759.1M
YoY Change -0.69% 5.17% -0.69%
LONG-TERM LIABILITIES
Long-Term Debt $594.2M $610.6M $594.2M
YoY Change 121.04% 117.0% 121.07%
Other Long-Term Liabilities $63.35M $67.71M $161.4M
YoY Change -9.6% -18.22% -22.4%
Total Long-Term Liabilities $657.6M $678.3M $755.6M
YoY Change 94.03% 86.26% 58.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $759.1M $822.7M $759.1M
Total Long-Term Liabilities $657.6M $678.3M $755.6M
Total Liabilities $1.553B $1.621B $1.553B
YoY Change 23.79% 23.15% 23.79%
SHAREHOLDERS EQUITY
Retained Earnings $727.4M $701.2M
YoY Change 16.45% 17.7%
Common Stock $261.9M $275.2M
YoY Change 193.96% 211.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $990.1M $977.3M $990.1M
YoY Change
Total Liabilities & Shareholders Equity $2.543B $2.598B $2.543B
YoY Change 29.13% 29.93% 29.13%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2021
OPERATING ACTIVITIES
Net Income $29.42M $44.05M $115.6M
YoY Change -7.52% 0.25% 10.13%
Depreciation, Depletion And Amortization $26.69M $27.16M $105.6M
YoY Change 12.16% 39.3% 27.95%
Cash From Operating Activities $64.85M $8.732M $79.75M
YoY Change -46.14% -93.32% -74.52%
INVESTING ACTIVITIES
Capital Expenditures -$31.71M -$39.38M $133.8M
YoY Change 217.09% 20.42% 107.97%
Acquisitions $607.0M
YoY Change
Other Investing Activities $6.060M $32.95M -$557.4M
YoY Change 44.29% 488.46% -2645.32%
Cash From Investing Activities -$25.65M -$6.424M -$691.3M
YoY Change 342.22% -76.3% 1526.28%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$164.0M
YoY Change -1607.93%
Debt Paid & Issued, Net $113.9M
YoY Change 65.28%
Cash From Financing Activities -36.97M 18.45M 485.7M
YoY Change 120.07% -160.11% -873.18%
NET CHANGE
Cash From Operating Activities 64.85M 8.732M 79.75M
Cash From Investing Activities -25.65M -6.424M -691.3M
Cash From Financing Activities -36.97M 18.45M 485.7M
Net Change In Cash 2.231M 20.76M -125.3M
YoY Change -97.72% -71.56% -160.39%
FREE CASH FLOW
Cash From Operating Activities $64.85M $8.732M $79.75M
Capital Expenditures -$31.71M -$39.38M $133.8M
Free Cash Flow $96.56M $48.11M -$54.10M
YoY Change -25.95% -70.57% -121.76%

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CY2021 us-gaap Nature Of Operations
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><b style="font-weight:bold;">Note 1—Nature of Business</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Organization and operations</span><b style="font-weight:bold;"> — </b>Primoris Services Corporation is one of the leading providers of specialty contracting services operating mainly in the United States and Canada. We provide a wide range of specialty construction services, maintenance, replacement, fabrication and engineering services to a diversified base of customers through our three segments. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-size:8pt;visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">We have longstanding customer relationships with major utility, refining, petrochemical, power, midstream, and engineering companies, and state departments of transportation. We provide our services to a diversified base of customers, under a range of contracting options. A substantial portion of our services are provided under Master Service Agreements (“MSA”), which are generally multi-year agreements. The remainder of our services are generated from contracts for specific construction or installation projects.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-size:8pt;visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">We are incorporated in the State of Delaware, and our corporate headquarters are located at 2300 N. Field Street, Suite 1900, Dallas, Texas 75201. Unless specifically noted otherwise, as used throughout these consolidated financial statements, “Primoris”, “the Company”, “we”, “our”, “us” or “its” refers to the business, operations and financial results of the Company and its wholly-owned subsidiaries.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Reportable Segments</span> — Through the end of 2020, we segregated our business into five reportable segments: the Power,</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">Industrial and Engineering segment, the Pipeline and Underground segment, the Utilities and Distribution segment, the Transmission and Distribution segment, and the Civil segment. In the first quarter of 2021, we changed our reportable segments in connection with a realignment of our internal organization and management structure. The segment changes reflect the focus of our chief operating decision maker (“CODM”) on the range of services we provide to our end user markets. Our CODM regularly reviews our operating and financial performance based on these segments. See Note 14 – <i style="font-style:italic;">“Reportable Segments”</i> for a brief description of the reportable segments and their operations.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses were made.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Seasonality </span><b style="font-weight:bold;">—</b><span style="white-space:pre-wrap;"> Our results of operations are subject to quarterly variations. Some of the variation is the result of weather, particularly rain, ice, snow, and named storms, which can impact our ability to perform construction and specialty services. These seasonal impacts can affect revenue and profitability in all of our businesses. Any quarter can be affected either negatively or positively by atypical weather patterns in any part of the country. In addition, demand for new projects tends to be lower during the early part of the calendar year due to clients’ internal budget cycles. As a result, we usually experience higher revenue and earnings in the third and fourth quarters of the year as compared to the first two quarters.</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Variability </span>— Our project values range in size from several hundred dollars to several hundred million dollars. The bulk of our work is comprised of project sizes that average less than $5.0<span style="white-space:pre-wrap;"> million. We also perform large construction projects which tend not to be seasonal, but can fluctuate from year to year based on customer timing, project duration, weather, and general economic conditions. Our business may be affected by declines or delays in new projects or by client project schedules. Because of the cyclical nature of our business, the financial results for any period may fluctuate from prior periods, and our financial condition and operating results may vary from quarter to quarter. Results from one quarter may not be indicative of financial condition or operating results for any other quarter or for an entire year.</span></p>
CY2021 us-gaap Number Of Reportable Segments
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Reclassification </span><b style="font-weight:bold;">—</b>Certain previously reported amounts have been reclassified to conform to the current year presentation.</p>
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2021 us-gaap Use Of Estimates
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="display:inline-block;text-indent:0pt;width:36pt;"/><span style="font-style:italic;font-weight:bold;">Use of estimates </span><b style="font-weight:bold;">—</b><span style="white-space:pre-wrap;">The preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. As a construction contractor, we use estimates for costs to complete construction projects and the contract value of certain construction projects. These estimates have a direct effect on gross profit as reported in these consolidated financial statements. Actual results could materially differ from our estimates.</span></p>
CY2021 prim Minimum Liquidation Period Of Assets In Which Significant Working Capital Invested
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CY2021 prim Percentage Of Labor Force Subject To Collective Bargaining
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CY2021 prim Collective Bargaining Agreements Number
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CY2021 prim Collective Bargaining Agreements Number Of Years Without Work Stoppages
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CY2021 prim Self Insurance Limit Per Claim
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CY2021 prim Significant Revision In Contract Increase Decrease In Net Income
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CY2021Q4 prim Significant Revision In Contract Estimate Earning Per Share Basic Impact
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Customer concentration</span> — We operate in multiple industry segments encompassing the construction of commercial, utility, industrial and public works infrastructure assets primarily throughout the United States. Typically, the top ten customers in any one calendar year account for approximately 40.0% to 50.0% of total revenue; however, the group that comprises the top ten customers varies from year to year. For the years ended December 31, 2021, 2020 and 2019, approximately 42.9%, 47.0% and 47.2%, respectively, of total revenue was generated from our top ten customers in each year. In each of the years, a different group of customers comprised the top ten customers by revenue, and no one customer accounted for more than 10% of total revenue.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">On January 29, 2019, one of our California utility customers filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. For the year ended December 31, 2019, the customer accounted for approximately 7.2% of our total revenue. In the third quarter of 2019, we entered into an agreement with a financial institution to sell, on a non-recourse basis, except in limited circumstances, substantially all of our pre-petition bankruptcy receivables with the customer. We received approximately $48.3 million upon the closing of this transaction in October 2019. During the year ended December 31, 2019, we recorded a loss of approximately $2.9 million in “<i style="font-style:italic;">Other income (expense), net</i>” on the Consolidated Statements of Income related to the sale agreement. During 2020, the customer emerged from bankruptcy. We are continuing to perform services for the customer and the amounts billed for these services continue to be collected in the ordinary course of the customer’s business.</p>
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